← Broker database 2025-10-08
Eyan Michael Townsend Suspended One Year for Deleting Business Communications
According to FINRA, Eyan Michael Townsend was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in all capacities for one year for causing his member firm to fail to preserve required books and records and for impeding a firm investigation.
Townsend sent unauthorized business-related text messages on his personal cell phone without disclosing his use of text messages to the firm or providing copies of the messages. He used these messages to exchange business-related communications with another associated person at the firm.
Securities regulations require firms to preserve all business-related communications, including text messages. When representatives conduct business through unapproved channels, firms cannot meet their recordkeeping obligations and cannot supervise the communications for potential compliance issues.
Making matters significantly worse, during the subsequent firm investigation, Townsend falsely stated to the firm that he had not exchanged business-related text messages with another associated person. To impede the investigation further, Townsend deleted the text messages from his cell phone and asked the other associated person to delete the messages from her phone as well.
This obstruction of the firm's investigation transformed what might have been a recordkeeping violation into a much more serious matter involving dishonesty and evidence destruction.
The suspension is in effect from October 20, 2025, through October 19, 2026.
For investors, this case illustrates the importance of communication preservation requirements. If you have important communications with your broker, consider keeping your own records. Additionally, be aware that attempts by brokers to communicate through unofficial channels like personal phones may indicate they are trying to avoid oversight.